Guy Sebastian’s former manager could avoid jail time despite being found guilty of stealing hundreds of thousands of dollars from the beloved pop star.Titus Day was convicted in June of embezzling close to $625,000 from his former client and close friend during their decade-long working relationship.The 49-year-old was granted conditional bail ahead of a sentence hearing on 16 September.On Monday, the Supreme Court revealed its reasons for knocking back a third application by prosecutors to have Mr Day taken into custody while he awaits sentencing.The judgment stated due to the possibility that Mr Day could serve his sentence in the community rather than behind bars, there was no legal requirement for him to be denied bail, as was argued by prosecutors. His lawyers argued due to the nature of the crimes and past record, Mr Day may never see a jail cell.“We were not satisfied that the respondent will be sentenced to imprisonment to be served by full-time detention,” the judgment stated.Mr Day will remain on bail with the same conditions, including that he had previously surrendered his passport and that he reports to Waverley Police Station once a week.The court heard that over half the amount Mr Day was found guilty of stealing was either given away to other people or was money he would have been owed as commission for agency services anyway.Mr Day’s lawyers argued his client had taken a portion of the money in order to secure payment at a time when the business relationship between him and Mr Sebastian had broken down. His barrister, Dominic Toomey SC, argued those factors, along with his lack of criminal history, may lead to leniency at sentencing.Mr Toomey said his client should be sentenced to an intensive correction order that would be served in the community and may include conditions such as home detention and electronic monitoring.“We will argue on sentence that this is not a case where the money that has been found to have been embezzled was used in the way often seen in these cases, where the person simply sought to enrich themselves,” Mr Toomey argued during a bail hearing earlier in the month. Counsel for the Director of Public Prosecutions (DPP) said it was important Mr Day’s punishment discourage others from committing similar white-collar crimes.However, counsel for the DPP also accepted there were a number of factors in favour of Mr Day receiving a non-custodial sentence, including his “otherwise unblemished criminal history”.Following Mr Day’s guilty verdict, Mr Sebastian took to Instagram to vent his relief that the “painful” chapter was over. “It was not only shocking but also heartbreaking to discover the depth of betrayal and dishonesty that I uncovered over these last four years,” he said. Mr Day was convicted on 34 of the 60 charges he was facing which involved allegedly embezzling money owed to the singer in the form of music royalties, performance and ambassador payments.He became Mr Sebastian’s manager in 2009 through his own talent management business, 6 Degrees.The two had been close friends but parted ways after a bitter falling out in 2017.